August of this year HP’s then current VP announced it wanted to get rid of the world’s largest PC division, and that it would cancel all webOS-based products. This rendered strong critique both internally and from stockholders. The new VP has decided it is best to keep the PC division.
Former VP Leo Apotheker announced that he wanted to get rid of PSG (Personal Systems Group), to become 100% focused on the business sector with the goal of competing with Oracle and IBM. The process of selling off, or breaking free PSG to a subsidiary, would take 18 months. Apotheker received strong critique for his decision, and little less than a month later he was fired, and replaced by Meg Whitman, former VP at Ebay.
With Leo Apotheker gones the board quickly realized the decision was not in the best interest of the company. Even Intel VP Paul Otellini urged HP to keep PSG, and did not see the logic behind the previous decision. HP’s PC division, PSG, is the world’s largest and is still making money despite the poor economic conditions in the world, which is not something you can say about other companies.
The company has closely reconsidered and decided that the best is to keep PSG, with the motivation ”together we are stronger”.
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger.” Meg Whitman, VP at HP
The company will remain a player in the retail sector, with continued dedication to all kinds of customers from big business to end consumers.
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